For small businesses, e-commerce companies, or digital natives, choosing on-demand warehousing for inventory and fulfillment is a smart, agile, and cost-effective solution.
What is On-Demand Warehousing, and How Does it Work?
On-demand warehousing leverages existing idle infrastructure. It is the industrial equivalent of the sharing economy and operates much like Airbnb does for accommodation, Uber for ride-sharing, Upwork for freelancing, or WeWork for shared office space.
Beyond warehouse space itself, companies have access to a comprehensive range of logistics services, including existing inventory, pick-and-pack, refrigeration and temperature control, special height and size, and bonded warehousing.
Additionally, on-demand warehousing works both ways. Whether you require warehouse space or have unused space you need to fill, it is a solution that sends value straight to the bottom line.
Top Ten Benefits of On-Demand Warehousing
On-demand warehousing helps organizations gain critical flexibility, an absolute must in today’s challenging economy.
Here are ten benefits your company will enjoy:
Cost benefits. Only pay for what you need, when you need it. There is no need to commit to a long-term lease, and the cost of entry is very low. While most traditional warehouse leases require a five-year commitment, on-demand allows you to access services and space based on immediate needs.
Agility. On-demand warehousing supports scale in any direction. Whether you are entering new markets or have seasonal ups and downs to navigate, you are covered.
Reduce payroll burden. Since you are leveraging existing warehouse space and services, you have a ready-trained staff that’s ready to dive right in. There is no need to go through the process of screening, hiring, and training staff. If there are months or seasons that you don’t need the support, you won’t have to pay for it.
Get started quickly. New businesses and startups can bypass the hurdles they would typically have to navigate to get products into the market fast. In today’s fast-paced business landscape, the fastest to market enjoys the lion’s share of the pie.
Optimize inventory. Minimize costly overstocks and out-of-stocks while gaining item-level visibility into your entire inventory. Remove ambiguities and ensure your supply meets the demand.
Suitable for long-term or short-term needs. On-demand warehousing is as good for short-term inventory overflow management as it is for long-term order fulfillment.
Outsourcing adds value to your business model. Leverage skills and services you don’t usually offer to build loyalty and give your customers added value. For example, kitting services provide huge value to consumers, retailers, and wholesalers.
Make use of idle infrastructure on the market. There are vast numbers of warehouses across the nation that sit empty. If they remain idle, we are wasting a valuable resource that could be better used to improve customer service, business outcomes, and balance sheets for thousands of small companies throughout America.
Enter new target markets with low risk. Doing business in a new market is always a risk. On-demand warehousing reduces risk and allows you to test the waters before diving into the deep end.
Offer new services, like same-day fulfillment. On-demand warehousing allows you to have stock closer to your target market, enabling enhanced customer service and same-day fulfillment.
Are you ready to get started with on-demand warehousing?
Whether you need warehouse space on-demand or you have idle space you would like to leverage, we would love to be part of the solution. Fill out our online form and let us know how we can help.